Manatee commissioners send tax increase to voters

Published: Tuesday, April 9, 2013 at 12:52 p.m.

Last Modified: Tuesday, April 9, 2013 at 6:18 p.m.

MANATEE COUNTY - Manatee County voters will decide in June whether to approve a one-half percentage point sales tax increase to fund indigent health care.

Facts

SALES TAX FACTS

Facts about a proposed sales tax in Manatee County to pay for indigent medical care:

Who would qualify?

Those declared indigent by the county, with incomes up to 135 percent of federal poverty limits. That translates to income of $31,392.50 for a family of four. The county would be the payer of last resort. Beneficiaries could not qualify for any other federal or state assistance.

How is indigent care currently funded?

A trust fund of $45 million was established through the sale of Manatee Memorial Hospital in 1984, but it is expected to be insolvent by 2015. Currently, the trust fund provides $9 million a year for indigent care and property taxes pay $14 million for a total of $23 million.

How would this affect Manatee's sales tax rate?

It would increase the rate from 6.5 cents per dollar to 7 cents. Sarasota County has a 7 percent rate.

If approved in the June 18 special election, Manatee will become the sixth county in the state to implement a similar surtax. Other counties have public hospitals or fund the program through property taxes.

Manatee County spends approximately $23 million annually on community health care — $14 million from general revenue (property taxes) and $9 million from a trust fund established when Manatee Memorial Hospital was sold in 1984.

Manatee County's sales tax would increase to 7 percent if the referendum passes and provide enough revenue to pay for care of indigent patients.

The program covers medical treatment for patients who do not qualify for state and federal assistance and who have no insurance or other means of paying.

County officials say, if voters approve the sales tax, it could allow the county to reduce property taxes.

Through three hours of discussion and public comment at a commission meeting Tuesday, the biggest controversy was not whether to have the vote, but when.

“It's unusual we have most people agreeing we need to address indigent care issue,” said Commissioner Michael Gallen, who asked the vote be delayed in order to develop a more detailed health care plan. “I want community buy-in. I want the community to understand it, to feel secure. I'd rather have it in 2014.”

But advocates for a vote in June said that there is no time to spare. Funding from the hospital trust fund, which started at $45 million and grew through investments, is expected to run out in 2015.

“It's about timing, what leaves the most options for our community as things are settled in the federal and state level,” said Commissioner John Chappie. “To me, it's about being proactive, not reactive. We know we are heading for a fiscal cliff.”

An ordinance calling for a special election, despite estimated costs of $410,000, on June 18 was passed 5-2. Chappie, along with commissioners Vanessa Baugh, Betsy Benac, Larry Bustle and Carol Whitmore, approved the ordinance. Gallen and Commissioner Robin DiSabatino opposed.

The sales tax ordinance was revised to include a 10-year expiration following the effective date of Jan. 1, 2014, if passed. Criteria for qualifying residents was also reduced to those with income no higher than 135 percent of the federal poverty guidelines; That would be a total of $31,793 for the average four-person household.

A majority of the public, which packed the chambers to standing-room only, supported the June vote.

“I really think this is a moment to get ahead of it, get it on the ballot,” said Byron Shinn, a Bradenton accountant. “Yes, we'll have to spend $400,000, but the other option is way too painful.”

But there are critics, as well.

Richard Conard, who has practiced medicine locally for years, questioned the vagueness of the ordinance.

“Your proposed action has no vision,” Conard said. “At present, you are moving in a way that will cause great disruption in our health care delivery in Manatee County.”

Rodger Dowell said the Commission's focus should be on job creation.

“If you were clearly interested, you would cut taxes by $23 million,” Dowell said. “Instead of helping Manatee County grow, you're hurting it.”

Tom Seguin, chairman-elect of the Manatee County Chamber of Commerce, and Sharon Hillstrom, president of Manatee County Economic Development Corp., each voiced support for the surtax, as well as the June vote.

“What kind of message are we sending to doctors if we no longer provide compensation for care of the working poor?” Seguin posed. “We all agree the health care trust fund runs out in 2015 and we'll have a $9 million funding gap. . . . This spreads the burden to individuals in the area who are using services but don't own property.”

Hillstrom explained if property taxes are decreased and quality of life increased, more businesses may come to the area.

All Manatee County registered voters are eligible to cast a referendum ballot on June 18.

<p><em>MANATEE COUNTY</em> - Manatee County voters will decide in June whether to approve a one-half percentage point sales tax increase to fund indigent health care.</p><p>If approved in the June 18 special election, Manatee will become the sixth county in the state to implement a similar surtax. Other counties have public hospitals or fund the program through property taxes.</p><p>Manatee County spends approximately $23 million annually on community health care — $14 million from general revenue (property taxes) and $9 million from a trust fund established when Manatee Memorial Hospital was sold in 1984. </p><p>Manatee County's sales tax would increase to 7 percent if the referendum passes and provide enough revenue to pay for care of indigent patients. </p><p>The program covers medical treatment for patients who do not qualify for state and federal assistance and who have no insurance or other means of paying. </p><p>County officials say, if voters approve the sales tax, it could allow the county to reduce property taxes.</p><p>Through three hours of discussion and public comment at a commission meeting Tuesday, the biggest controversy was not whether to have the vote, but when.</p><p>“It's unusual we have most people agreeing we need to address indigent care issue,” said Commissioner Michael Gallen, who asked the vote be delayed in order to develop a more detailed health care plan. “I want community buy-in. I want the community to understand it, to feel secure. I'd rather have it in 2014.”</p><p>But advocates for a vote in June said that there is no time to spare. Funding from the hospital trust fund, which started at $45 million and grew through investments, is expected to run out in 2015.</p><p>“It's about timing, what leaves the most options for our community as things are settled in the federal and state level,” said Commissioner John Chappie. “To me, it's about being proactive, not reactive. We know we are heading for a fiscal cliff.”</p><p>An ordinance calling for a special election, despite estimated costs of $410,000, on June 18 was passed 5-2. Chappie, along with commissioners Vanessa Baugh, Betsy Benac, Larry Bustle and Carol Whitmore, approved the ordinance. Gallen and Commissioner Robin DiSabatino opposed.</p><p>The sales tax ordinance was revised to include a 10-year expiration following the effective date of Jan. 1, 2014, if passed. Criteria for qualifying residents was also reduced to those with income no higher than 135 percent of the federal poverty guidelines; That would be a total of $31,793 for the average four-person household.</p><p>A majority of the public, which packed the chambers to standing-room only, supported the June vote.</p><p>“I really think this is a moment to get ahead of it, get it on the ballot,” said Byron Shinn, a Bradenton accountant. “Yes, we'll have to spend $400,000, but the other option is way too painful.”</p><p>But there are critics, as well.</p><p>Richard Conard, who has practiced medicine locally for years, questioned the vagueness of the ordinance.</p><p>“Your proposed action has no vision,” Conard said. “At present, you are moving in a way that will cause great disruption in our health care delivery in Manatee County.”</p><p>Rodger Dowell said the Commission's focus should be on job creation.</p><p>“If you were clearly interested, you would cut taxes by $23 million,” Dowell said. “Instead of helping Manatee County grow, you're hurting it.” </p><p>Tom Seguin, chairman-elect of the Manatee County Chamber of Commerce, and Sharon Hillstrom, president of Manatee County Economic Development Corp., each voiced support for the surtax, as well as the June vote.</p><p>“What kind of message are we sending to doctors if we no longer provide compensation for care of the working poor?” Seguin posed. “We all agree the health care trust fund runs out in 2015 and we'll have a $9 million funding gap. . . . This spreads the burden to individuals in the area who are using services but don't own property.”</p><p>Hillstrom explained if property taxes are decreased and quality of life increased, more businesses may come to the area.</p><p>All Manatee County registered voters are eligible to cast a referendum ballot on June 18.</p>